Pirelli, Gavio seen joining Alitalia cash call -sources
http://currenteconomictrendsandnews.com/wp-content/uploads/2013/11/64ed0__p-89EKCgBk8MZdE.gif
* Share issue subscription deadline ends Wednesday
* Air France-KLM decided not to participate
MILAN Nov 27 (Reuters) – Two more Alitalia shareholders are expected to subscribe to the Italian airline’s 300 million-euro ($ 400 million) share issue rights offer that ends on Wednesday, sources close to the matter said.
Shareholders have until 2300 GMT to decide whether to subscribe to the cash call, which is part of a bigger rescue package engineered by the government to keep the cash-strapped airline in the air.
Italian tyre maker Pirelli will subscribe to maintain its 1.8 percent stake, while financial holding company Finanziaria di Partecipazioni e Investimenti, part of construction firm Gavio, will subscribe up to 4 million euros, the two sources said.
Alitalia said results of the capital increase will be announced early on Thursday.
Some key investors and two large domestic banks have already pledged 240 million euros, including the Gavio and Pirelli stakes, this would bring the total so far to around 250 million euros.
This includes the investment by Italy’s state-owned postal service, which the government brought in last month to take up any unsubscribed shares in the capital increase for a total sum of up to 75 million euros.
Top shareholder Air France-KLM, with a 25 percent stake refused to take up its share of the cash call, saying Alitalia’s new business plan pledging severe cost cuts was not enough to save the stricken Italian carrier unless its creditors also wrote off some of its huge debts.
The capital increase, while keeping creditors at bay and Alitalia’s aircraft in the air, was seen as just a stopgap measure until a strategic partner could be found to help revamp the company and make it more competitive in a cut-throat airline market.
Air France-KLM’s decision to walk away from the cash call and have its stake diluted to 7 percent raises uncertainty over Alitalia’s future. The Franco-Dutch group has so far been seen as the most suitable carrier to come to Alitalia’s rescue.
Analysts said Air France-KLM could still revive its interest in Alitalia via a takeover offer next year, but only if Alitalia manages to free itself of some of its debt.
Apart from Air France-KLM, Alitalia is currently owned by a disparate group of 21 investors including bank Intesa Sanpaolo and highway operator Atlantia.
One of the shareholders, insurer Fondiaria-SAI, has already said it will not participate in the cash call, while real estate group Solido Holdings is also expected to abstain, a source said. ($ 1 = 0.7374 euros) (Reporting by Stefano Rebaudo and Paola Arosio; Writing by Agnieszka Flak; Editing by the Giles Elgood)
Read more about Pirelli, Gavio seen joining Alitalia cash call -sources and other interesting subjects concerning Real Estate at TheDailyNewsReport.com
No comments:
Post a Comment